What is the "three-pronged approach" to organizing a banking union?
What will be an ideal response?
Centralize financial supervision, create a deposit insurance fund, and provide mechanisms for the resolution of insolvent banks within the euro area.
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Tom carries on loud cellphone conversations in public places. He values such conversations at $1 per minute. Steve prefers piece and quiet. He would pay $2 per minute to avoid overhearing Tom's conversations. In this situation
a. Tom should quit using his cellphone because that would be a Pareto improvement b. Tom should quit using his cellphone because that would be efficient c. If Steve made a side payment of $3 to Tom, that would be a Pareto improvement d. If Steve paid Tom 50 cents per minute to quit talking, that would be a Pareto improvement e. If Steve paid Tom $1.50 per minute to quit talking, that would be a Pareto improvement
The goal of an unbalanced economic development strategy is to create
a. a political revolution or change that sparks economic development b. labor unions in nonunionized markets that unbalances those markets c. more government jobs for workers in the modern sector d. high profit in the private sector and low profit in the government sector e. forward and backward linkages that provide mutually sustaining markets
If baked potatoes and sour cream are complements, then an increase in the price of sour cream decreases the demand for baked potatoes
a. True b. False Indicate whether the statement is true or false
Of the following interest rates, which is the highest one at which the present value of $200 ten years from today is greater than $150?
a. 2 percent b. 4 percent c. 6 percent d. 8 percent